OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of B++
(Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “bbb+”
of Triple-S Salud, Inc. (TSS) and its affiliate, Triple-S
Vida, Inc. (TSV). A.M. Best also has affirmed the FSR of B++ (Good)
and the Long-Term ICR of “bbb” of Triple-S Blue, Inc. (TSB), as
well as the FSR of A- (Excellent) and the Long-Term ICR of “a-” of Triple-S
Propiedad, Inc. (TSP). Concurrently, A.M. Best has affirmed the
Long-Term ICR of “bb+” of Triple-S Management Corporation (TSM)
(NYSE:GTS), the ultimate parent of TSS, TSV, TSB and TSP. The outlook of
these Credit Ratings (ratings) is stable. All companies are domiciled in
San Juan, PR.

The ratings of the TSS and TSV are based on the strength of its business
profile and diversification strategy to grow product revenue and
earnings. The Triple-S name has strong brand recognition in the Puerto
Rico market and TSS is a market leader in its core health insurance
operations. TSS’s revenue is diversified across multiple market segments
in health lines of business, and supplementary products are sold through
TSV, a sister company. TSV possesses a strong market presence in the
life and ancillary benefit lines of business. The organization is
pursuing a business expansion strategy outside of Puerto Rico, and is
focusing on growing operations in Central America by leveraging the
capabilities of TSV’s subsidiary, TSB. The organization’s cultural and
language strengths may lead to attaining a large underserved population,
as well as extend the Blue Cross and Blue Shield brand into Central
American.

Offsetting rating factors include pressure on group commercial
membership, a declining trend of operating earnings over the medium term
and a weakened economic environment in the companies’ core market of
Puerto Rico. The organization’s long-term membership has been negatively
impacted by attrition within the group commercial market, driven by the
economic environment in Puerto Rico. Furthermore, the managed care
segment net operating earnings trends are unfavorable, which have been
impacted by high utilization rates and unfavorable prior period reserve
adjustments.

TSP’s ratings reflect its excellent level of risk-adjusted
capitalization, solid operating results primarily driven by investment
income and strong market presence in Puerto Rico. Partially offsetting
these positive rating factors are the company’s geographic risk
concentration, competitive operating environment and above-average
underwriting expense ratio relative to the commercial casualty
composite. While the underwriting expense ratio reflects high commission
costs, the ratio remains in line with its local market peers. With all
business written in Puerto Rico, the company remains exposed to the
potential for frequent and severe weather-related events, as well as
economic, judicial and regulatory concerns. Despite these concerns, the
outlook reflects A.M. Best’s expectation for continued strong
risk-adjusted capitalization and profitable operating performance over
the near term, although at reduced levels relative to prior years.

This press release relates to Credit Ratings that have been published
on A.M. Best’s website. For all rating information relating to the
release and pertinent disclosures, including details of the office
responsible for issuing each of the individual ratings referenced in
this release, please see A.M. Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings.

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.